Yes, the GREEN MOUNTAIN FLYER has been reduced to one regular train per week plus a handful of specials for the 2010 season. It's basically a situation of pure economics. Last year the GREEN MOUNTAIN FLYER operated only on days that bus tour groups were booked; without them, business had dwindled to almost nothing at times. VRS did offer to run trips for the local Chamber of Commerce and other interested parties this year, but that's unlikely to happen very often. I had a long chat with the folks at the Chamber a couple of months ago, and they understand the economics of the situation and do not fault VRS's decision to discontinue regular GREEN MOUNTAIN FLYER operations. VRS told the Chamber that a minimum of 100 fares were needed to break even for a roundtrip to Chester, and that VRS was having a hard time getting that many passengers even when a tour group was booked. At the moment, neither the Chamber nor any other local entity has money available to subsidize excursions out of Bellows Falls. The Chamber folks made it very clear that they'd like to promote some trips, but the only way that would be possible is if some "themed event" excursions could sell enough tickets in advance to pay for the operating costs. If any one has good ideas for some themed excursions, the Chamber would be willing to listen.
And, yes, conflict with freight operations was also a consideration--but not the deciding factor. Getting the FLYER through the yard at Riverside when both the DASW switcher and 263/264 were there together was a problem sometimes. But I do think it is interesting to note that VRS got the State of Vermont to reinstall the passing siding at Bartonsville a number of years back--supposedly to help accomodate a smooth interaction between excursion and freight operations; since then, the siding has been used more for freight car storage than the meeting of trains.
As far as subsidizing VRS passenger operations goes, it is true there has been no direct subsidies on trips sponsored by VRS itself. But it cannot be overlooked that the State of Vermont has used VRS excursion operations, the CHAMPLAIN commuter operation, and now AMTRAK to obtain many millions of dollars in Federal monies to fix up railroad tracks in Vermont. There has been a lot of Federal money that's gone into Vermont trackage because of a tie to passenger service!
The again deteriorating track condition on the Green Mountain Railroad hasn't helped the GREEN MOUNTAIN FLYER's cause, either. There have recently been numerous slow orders between Bellows Falls and Chester, and getting the FLYER over the road on its two hour schedule has become increasingly difficult. With the shifting of overhead freight traffic away from the GMRC, there's little incentive at the present time for major track rehabilitation. Interchange with Pan AM Southern now goes via Hoosick Jct., and once the new interchange between PAS and the New England Central is established at Millers Falls, MA--and existing contracts for VRS/NECR interchange expire--there won't likely be much overhead traffic off the Norfolk Southern moving via VRS any more. The GMRC may well be destined to become a 10 MPH freight line soon--much the way the Rutland to North Bennington trackage was for many years.